M&M Financial Q2 Update: AUM up 13%, disbursements soft; Stage 2 assets improve

Mahindra & Mahindra Financial Services Ltd. reported its business update for the July-September period on Friday, October 3, which saw growth in its assets but no major change in asset quality.At the end of the September quarter, the company anticipates disbursements of ₹13,500 crore, a growth of 3% compared to the same period last year. For the first half of the financial year, the disbursements grew by 2% from last year to ₹26,300 crore.

Business assets for the company increased by 13% from the September 2024 period to ₹1.26 lakh crore.

Collection efficiency remained constant at 96%, which was the same figure reported in the same quarter last year as well.At the end of the September quarter, the company’s gross stage 3 assets are expected to be in the range of 3.9% to 4%, compared to 3.8% at the end of the June quarter. At the same time, the stage 2 assets are estimated to be in the range of 5.75% to 5.85%, compared to 5.9% in June, and 6.4% during the same quarter last year.

M&M Financial currently has a liquidity chest of over ₹8,500 crore, it said in its business update.

Shares of Mahindra & Mahindra Financial Services are recovering from the lows of the day after the business update announcement, currently trading 0.6% higher at ₹275. The stock has risen 6% in the last one month.